AstraZeneca (LON: AZN) is a global biopharmaceutical firm focused on the discovery, development, and commercialisation of prescription medicines, primarily for the treatment of diseases in the areas of oncology, biopharmaceuticals, cardiovascular, renal and metabolism, respiratory and immunology, vaccines and immune therapies, and rare diseases.
AstraZeneca's stock is listed on the London Stock Exchange (LSE) and is a constituent of the FTSE 100 Index.
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The company has an active research and development presence in more than 60 countries across the globe, with its headquarters at the Cambridge Biomedical Campus in Cambridge, England. However, it also has strategic centres in Gothenburg, and Gaithersburg, Maryland. As of March 4, 2024, the company has 178 projects in its pipeline, with 17 new molecular entities in its late-stage pipeline.
AstraZeneca, A Brief History
AstraZeneca plc, a British multinational pharmaceutical and biotechnology company, was formed in 1999 through the merger of the Swedish Astra AB and the British Zeneca Group, which was formed in 1993. The company's headquarters are at the Cambridge Biomedical Campus in Cambridge, England.
AstraZeneca traces its earliest corporate history to 1913, when Astra AB was founded by a large group of doctors and apothecaries in Södertälje, Sweden. Its British counterpart, Zeneca PLC, was formed in 1993 when ICI divested its pharmaceuticals businesses. Astra and Zeneca Group merged six years later to form AstraZeneca plc, with its headquarters in the UK. The company has since made various acquisitions to expand its footprint in the pharmaceutical and biotechnology industries.
AstraZeneca is a constituent of the FTSE 100 and has a position as one of the top companies listed on the London Stock Exchange. The company has a primary listing on the London Stock Exchange and a secondary listing on the Nasdaq Stockholm. Shares of AstraZeneca can also be acquired via its ADRs, which trade on the Nasdaq.
AstraZeneca Share Price & Dividend Yield
London-listed shares of AstraZeneca have been on the rise for a significant period, with only a few prominent pullbacks on the way. While there was an initial decline following the onset of the COVID-19 pandemic, the company's eventual vaccine resulted in revenue soaring, helping to once again, drive the share price higher.
At the time of writing, the stock's all-time high was recorded in April 2023.
AstraZeneca EPS and Revenue Breakdown 2020-2023
| AstraZeneca | Annual EPS | Annual Revenue |
|---|---|---|
| 2020 | $2.44 | $26.62 billion |
| 2021 | $0.08 | $37.42 billion |
| 2022 | $2.12 | $44.35 billion |
| 2023 | $3.84 | $45.81 billion |
Pharmaceutical Industry Comparison
Other AstraZeneca News
AstraZeneca Share Price Forecast
As mentioned, the COVID-19 pandemic saw AZN shares pull back before the company's vaccine sales boosted its revenue, helping to push the stock to new highs and beyond. However, the more recent pullback (when looking on the daily chart), has lasted for some time.
While Guggenheim maintained a Buy rating on AstraZeneca shares in a recent note, they lowered their price target for the stock to 11,100p from 11,800p per share. With the firm stating it still views 2024 as “a relatively catalyst-light year” for AstraZeneca, it suggests they see a possibility AZN shares could remain subdued this year.
Analysts at Berenberg took a similar stance recently, also lowering the AZN price target, this time for its ADRs to $75.50 from $80, keeping a Buy rating on the stock. The firm noted that AZN shares have deteriorated over the past 12 months, with the company's pipeline progress not corresponding well with the pace of reinvestment. However, Berenberg believes AstraZeneca's growth remains strong with multiple drivers and that its pipeline is “exciting with multiple shots on goal.” All in all, analysts at Berenberg feel pipeline success is needed for investors to see continued and long-term growth being unlocked.
Our View for 2025: The lack of potential catalysts to drive AstraZeneca shares higher in the near term is a factor that could certainly come into play this year, and it would be no surprise to see the stock remain around current levels over the next few months. For a forecast or prediction for Astrazeneca in 2025 we would point you back to analyst consensus on this one, we will be watching for new catalysts that can move the dials.
Who Should Buy AstraZeneca Shares
When considering investing in AstraZeneca shares, several factors need to be taken into account. Not all investments are suitable for everyone, so consider these aspects:
Investors with a moderate to high-risk tolerance may find AstraZeneca shares suitable. As with any pharmaceutical company, AstraZeneca faces risks associated with drug development, clinical trials, and regulatory approvals. However, the company's diversified product portfolio and global presence provide it with some stability.
AstraZeneca has a history of paying dividends and has been committed to its dividend policy, making it attractive to income-oriented investors. The company's dividend yield and consistent payouts may appeal to those seeking regular income from their investments.
Investors with a long-term growth outlook may consider AstraZeneca. The company has been focusing on innovation and has a robust pipeline of drugs, which could lead to potential growth opportunities. Additionally, AstraZeneca's strategic investments in research and development demonstrate its commitment to future growth.
AstraZeneca's emphasis on developing drugs to address unmet medical needs, particularly in the areas of oncology, respiratory, and cardiovascular diseases, may resonate with ethical or impact investors who prioritize socially responsible investments. However, there are other aspects that may not sit too well, so it is important to conduct thorough research.
